Minimising and managing risk in business is extremely important and yet we find that is often the most overlooked area of business. Risk management can take many forms, from structuring the business correctly, to ensuring the most appropriate insurances are in place. It also covers partnership and other forms of business agreements and provides strategies and solutions for those times we weren’t necessarily planning on.
When we go into business, it is usually with the best of intentions and often not considering that something may happen that was never part of the original plan. Think of the disastrous consequences to a sole trader who has an accident at work which prevents him from earning a living for an extended period of time. A simple risk management strategy would be to ensure he has income protection insurance in place. While this strategy can’t change the accident, it can dramatically change the financial and business outcome.
At Ascent Accountants, we identify all areas of the potential risk associated with our clients business operations and the likely impact to not only their business operations but also their personal lifestyles and family security should there be a change in circumstances. Once we have identified all areas of risk, we develop a risk management strategy to reduce the vulnerabilities for the most effective and successful result.